Opec to prop up oil demand

LONDON/MOSCOW/DUBAI: Opec and allied producers yesterday pledged action to support the oil market as concerns mounted that a second wave of Covid19 will hobble demand and an earlier plan to raise output from next year would further depress prices.

Saudi Arabia, the biggest member of the Organisation of the Petroleum Exporting Countries (Opec), said noone should doubt the group’s commitment to providing support, while three sources from producing countries said a planned output increase from January could be reversed if necessary.

Opec and its allies, including Russia, collectively known as Opec+, have curbed output since January 2017 to try to support prices and reduce inventories.

For now, Opec+ is reducing production by 7.7 million barrels per day (bpd), down from cuts of 9.7 million bpd enforced from May 1 to August 1. Opec+ is due to reduce the cuts by a further 2 million bpd in January. — Reuters